TNT
Harambe:
Improved forex market (Vietnamese Dong) helps central bank buy greenback
(12/27/22)
The foreign exchange market has been improved and the Vietnamese đồngcurrently devalued by about 3.81 per cent against the US dollar compared to the beginning of this year, deputy governor of the State Bank of Vietnam (SBV) Đào Minh Tú said on Tuesday.
At a press conference to implement works of the banking industry in 2023 held on Tuesday, Tú said the devaluation rate of the đồng was lower than that of many countries in the world.
According to Tú, maintaining the exchange rate stability was one of the most difficult tasks for the SBV in 2022. However, the local forex market is basically going smoothly and credit institutions can meet the legal foreign currency needs of customers.
Notably, he said, after it was forced to sell a large amount of greenback earlier in the year to support the đồng, the SBV now can buy the US dollar to increase the nation’s foreign exchange reserves thanks to the improvement in the forex market.…
https://vietnamnews.vn/economy/1442398/improved-forex-market-helps-central-bank-buy-greenback.html
Tishwash:
The Central Bank issues recommendations to merchants and banks regarding exchange rates
Today, Tuesday, the Central Bank of Iraq issued recommendations to merchants and banks about exchange rates .
The bank’s media office stated, in a statement received by the Iraqi News Agency (INA), that “the board of directors of the Central Bank of Iraq held a meeting and discussed the repercussions and indicators of the rise in exchange rates in the local markets and the temporary pressures that the foreign currency exchange rate has been exposed to for days, resulting from internal and external factors.”
He added that “given the adoption of mechanisms to protect the banking sector, customers and the financial system, as all foreign trade requirements (for the purposes of documentary credits or transfers) are fully covered by the official price (1465) dinars to the dollar for documentary credits and (1470) dinars to the dollar for transfers.”
The Central Bank called on “merchants to review banks directly and not resort to brokers and speculators to avoid charging their imports with undue commissions and expenses, referring in this regard to what was issued by the Council of Ministers in its decision No. (351) for the year 2022 regarding non-payment of customs duties and amounts of tax secretariats in advance. This will reduce redundant loops, ease procedures, and remove costs resulting from pre-demarcation problems.”
The Central Bank stressed, “Banks must shoulder their responsibilities in facilitating and expediting procedures for their customers to ensure their access to financing with the best banking practices and with the least amount of loops, taking into account the established legal requirements.” link
America is waging an economic war through the dollar
Today, Tuesday, a member of the Syrian People’s Assembly, Mahmoud Jokhadar, accused the United States of practicing an economic war to stifle the Syrian people through the price of the dollar, indicating that America persists in imposing its siege on the country.
Jokhadar said, in a statement followed by (Iraqi Media News Agency / INA), that “in order for America to ensure the continuation of the bloodshed of the steadfast Syrian people and to continue plundering Syria’s wealth of oil and wheat, it persists in imposing its siege on the people.”
He added, “The American blockade is on the Syrian people, who are living in their worst conditions these days, from a winter without fuel and an exorbitant price hike, and its attempts to destroy the exchange rate and raise the price of its dollar, and this is all not only under the eyes of Syria’s Arab brothers, but also with its support and support from some of them in implementing this unjust siege.” “.
Jokhadar pointed out that “Syria considers America a permanent enemy, but what can we say about our Arab brothers who participate in strangling us, starving us, and continuing our bleeding to strangle the Syrian people financially and economically?”
The leader of the Al-Fateh Alliance, Ali Al-Fatlawi, called earlier on the government of Prime Minister Muhammad Shia’a Al-Sudani to reveal to the Iraqi people the new conspiracy that the United States of America is weaving by reducing financial transfers to Iraq, which led to raising the exchange rate of the dollar against the Iraqi dinar. link
Al-Sudani issues a package of “necessary” directives to end the dollar crisis – Urgent
The Prime Minister, Mr. Muhammad Shia’a Al-Sudani, met today, Tuesday morning, with the Governor of the Central Bank of Iraq, Mr. Mustafa Ghaleb Makhaif.
His Excellency listened to a detailed presentation by the Governor of the Bank regarding the rise in the exchange rate of foreign currency, and the most important measures taken by the Bank in this field.
The Prime Minister urged the Central Bank to achieve general stability of prices and the exchange rate, in accordance with the tasks stipulated in Articles (3 and 4) of the Central Bank of Iraq Law, which stipulate that the Central Bank aims to achieve stability in the local exchange rate, organize and monitor the work of banks and enhance the safety of The efficiency of payment systems and the development of the payments system.
The Prime Minister stressed the need for the bank to take the necessary measures to prevent illegal speculation and everything that harms the local market and leads to higher prices.
He also urged His Excellency to activate the steps of selling foreign currency at official prices to citizens through purchasing with electronic cards, opening sales outlets for travelers, or clients outside Iraq, or financing foreign trade, in accordance with the fundamentalist contexts and international standards for opening documentary credits and remittances.
The Governor of the Bank presented to the Prime Minister the positive position of the financial situation, stressing that the crisis regarding foreign currency is an emergency crisis for technical reasons, and coincided with the work of the new electronic platform and the delay in transfers due to the Christmas holidays.
The governor praised Cabinet Resolution No. 352 of 2022 to stop the pre-collection of taxes and customs duties on goods entering government ports, prevent double taxation, and collect them according to the approved contexts at border crossings.
Prime Minister’s Media Office
27-December-2022 link
Source: Dinar Recaps
Tishwash:
this is in Iraq’s news hmmmm they want their people to understand a currency float!
What is meant by currency float? What are its advantages and disadvantages?
The floating currency is intended to leave the value of a country’s currency to supply and demand when compared to another currency. There are millions of traders around the world buying and selling currencies, which helps determine their value for others.
The floating exchange rate is determined by these daily interactions between traders. If investors By buying the US dollar heavily, it is likely that its value will rise against other currencies, and this means that more dollars will be needed to purchase the same number of goods from abroad.
The writer, Mohamed Abdel-Khalek, is an economic analyst
How does the currency float system work?
The basis of the currency floating system is supply and demand. If the supply is greater than the demand, the value of the currency will decrease. On the contrary, if the demand is greater than the supply, its value will increase.
In the short term, the float can be affected by factors such as speculation, natural disasters, and political news, for example: elections can often lead to periods of negative sentiment if an extremist party has a chance to grab power.
As for the long term, the floating exchange rate in the foreign exchange trading market tends to fluctuate based on the economic performance of the country and its trade balance, if the economy is performing poorly it tends to see less investment from abroad, this means that less demand is made for the currency and thus exerting negative pressure on its worth.
The trade balance is the net of what a country exports and imports, so if a country imports more than it exports it has a net flow of its currency, this is because it demands more goods from other countries than those countries demand from them domestically, in return, the country sends more of its currency to abroad, thus increasing the market supply and decreasing its value.
Theoretically, a flotation mechanism can help countries recover from recession. This is because their currency tends to weaken as a result of poor economic performance. In turn, exports become more competitive because they are cheaper in the international market.
This can help provide a boost to local exporters. At the same time, imports become more expensive. This may make goods more expensive in the short term but has the potential to boost alternative domestic suppliers who become relatively cheaper.
Advantages of floating exchange rate
1. Stability in the trade balance
The trade balance is the difference between what a country imports and what it exports. It may also be known as “net imports”. This is an important economic aspect because it is a component of a country’s economic output.
A floating exchange rate allows for more stability in this region as the currency is volatile. When a currency depreciates it means that exports become cheaper to the rest of the world. This provides a boost to the balance of trade between countries as they can export more because they are relatively cheaper than their competitors.
By contrast, when a country sells a large number of goods abroad and has a positive trade balance, its currency is likely to strengthen, meaning that other countries will start to find it more expensive to import from that country. In turn, countries may look where Another about cheaper goods, which negatively affects the exchange rate.
2. Stability of inflation
One of the main drawbacks of a fixed exchange rate is that countries will naturally “import” higher prices, so the benefit of floating is that hyperinflationary countries will experience a depreciation of their currency, and this will then help offset the inflationary effect on other countries.
3. Decrease in foreign exchange reserves
By working under a system of floating exchange rate, the central bank in the country no longer needs large reserve currencies to stabilize the exchange rate, under the system of fixed exchange rate central banks need a wide range of currencies, and this means that if Needed to strengthen its currency it will sell foreign reserves thus increasing other supply in the market and lowering the value.
Instead, under a system of floating exchange rates, that same money can be used in a way that benefits the broader economy.
4. Independence
Under a fixed rate system shall operate central banksFor different countries in line with each other, for example: if a country raises interest rates to deal with inflation other central banks will need to respond, this is because what happens in one country is likely to affect monetary conditions in another country.
When currencies are linked to the dollar, changes in the value of the dollar will have an impact on the value of other currencies.
In contrast, these countries are subject to the feelings of the US Federal Reserve Bank and its monetary policy. By contrast, the floating exchange rate allows countries to decide on their monetary policy. Without focusing only on other countries.
5. Fewer speculative attacks
When a currency is artificially forced to stay at a fixed level, there is often bubbles in market activity. Investors know that a currency is undervalued, but with a fixed exchange rate central banks struggle to maintain the exchange rate. Constant.
There is a point where the countries currency remains stagnant, but the fundamentals appear to be undervalued or overvalued, this opens the door to speculative attacks on the currency as it seeks to make some easy money, and this in turn can lead to drastic shifts in the foreign exchange market which can cause great distress to national economies.
In contrast, a floating exchange rate is constantly changing reflecting a wide range of underlying conditions ranging from inflation to economic performance, so the exchange rate is largely in line with its underlying value.
Disadvantages of floating the exchange rate
1. Exacerbation of economic issues
Countries may face economic difficulties at home, there may be excessive inflation rates, economic stagnation or poor job opportunities, all of which can play a role in the foreign exchange market.
As a result of the flotation, investors look at the basic features of the economy to determine its value, and these basics include economic indicators such as growth and inflation, so when these indicators perform poorly, they are likely to lose value against other currencies.
The float also has the potential to drive the economy down as a weak currency puts pricing pressures on its imports, so for countries that import heavily they may face higher prices that will likely reduce consumer demand.
2. Possible volatility
One of the main problems with a flotation is that it can create volatile conditions for companies and countries, a sharp depreciation in the value of a currency can greatly affect the dynamics of its economy, imports become significantly more expensive which puts pressure on value-adding exporters, moreover
Companies that import raw materials will see higher prices as a result.
If the economy is formed in such a way that imports are a major component, it may struggle more during periods of currency weakness. By contrast, countries such as export-led China may benefit, since most of their business is focused on exporting their goods become cheaper abroad and thus Increased demand and improved economic conditions at home.
3. Weak monetary policy
Excuses flotation systemThe central bank has the responsibility of maintaining its currency peg, instead, it has the autonomy to pursue its monetary policy and economic agenda.
This is a two-sided coin. On the one hand, a well-managed monetary system can take advantage of this freedom, and on the other hand, mismanagement can lead to hyperinflation and financial crisis.
Many countries have tried to work their way out of debt by floating the currency, but the result has always been excessive levels of inflation and a bad credit rating. Instead, countries that may struggle to manage their monetary policy are better off having a fixed exchange rate. link
Source: Dinar Recaps
Tishwash:
They are honest: Iraq’s oil exports are controlled by the Americans
The representative of the Sadikoun Parliamentary Bloc, Ahmed Al-Musawi, affirmed today, Tuesday, that Iraq’s oil exports are controlled by America, while he indicated that the obstacles and obstacles set by Washington are attempts to thwart the Sudanese government.
Al-Moussawi said, in an interview followed by Al-Malooma Agency, that “Iraqi oil exports are subject to US control,” pointing out that “the US Federal Bank sent a small part of the oil money, which caused a rise in the exchange rate of the dollar.”
He added, “The United States of America controls the Iraqi market, and this domination must be eliminated.”
Al-Moussawi pointed out, “The Federal Bank’s continuation in sending insufficient funds to the market makes the government have the option of reducing the quantities of exported oil.”
He pointed out that “the government’s decisions to reduce the exchange rate of the dollar are successful and are a message of reassurance to the Iraqi people.” link
American drones flying over Baghdad International Airport!
Today, Tuesday, a security source said that American drones flew over the Camp Cropper base at Baghdad International Civil Airport, while confirming that the Iraqi airspace is controlled by British Serco companies, which allows foreign planes to use the airspace comfortably.
In an interview with Al-Maalouma agency, the source said, “Today, Tuesday, Baghdad International Airport witnessed the flight of American drones over its airspace, which directly threatens the country’s sovereignty,” noting that “the planes were flying over the American Camp Cropper base.”
He added, “The Iraqi airspace is controlled by the British company Serco, which allows the country’s airspace to foreign warplanes, except those belonging to Washington or the so-called international coalition in all its countries,” pointing out that “the number of aircraft reached two and is similar to the aircraft that targeted the leaders of victory (Abu Mahdi). The engineer, Qassem Soleimani) in the airport crime.
The source explained, “Washington’s continuation of the policy of violating Iraq’s sovereignty and penetrating its private security joints is a dangerous matter, which requires a government move to end the American presence in all its forms in the country.”
He asked, “What are warplanes doing over a civilian airport, and who is the victim that Washington wants to get rid of this time?”, expressing his astonishment at the “governmental and parliamentary silence over the ongoing US violations.” link
BlueKnight:
Remember an earlier agreement reached between Kuwait & IRAQ as negotiated with the IFM is that the IQD will not RV to more than Kuwait Dinar or more than 3 IMF SDRs = $ 3.99 Max
Source: Dinar Recaps
______________________________________________________
If you wish to contact the author of any reader submitted guest post, you can give us an email at UniversalOm432Hz@gmail.com and we’ll forward your request to the author.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © 2022 Dinar Chronicles
